The Personal and Occupational Pension Schemes (Indexation and Disclosure of Information) (Miscellaneous Amendments) Regulations (Northern Ireland) 2005

PART 3 AMENDMENTS RELATING TO DISCLOSURE OF INFORMATION

Disclosure of Information Regulations

Increase in maximum level of civil penalties

17.  For regulation 11 of the Disclosure of Information Regulations(1) (penalties) there shall be substituted the following regulation –

“Civil penalties

11.   Where any person fails, without reasonable excuse, to comply with any requirement imposed under these Regulations, the Regulatory Authority may require that person to pay within 28 days a penalty which shall –

(a) in the case of an individual, not exceed £5,000, and

(b) in any other case, not exceed £50,000.”.

Choice of annuities: members

18.  For paragraph 7 of Schedule 2 to the Disclosure of Information Regulations(2) (information as to options under scheme to be made available to members) there shall be substituted the following paragraph –

“7.— (1) The options available to the member within the scheme rules.

(2) Sub-paragraph (3) applies in relation to a member who, under an option within sub-paragraph (1), has an opportunity to select an annuity.

(3) The information to be provided under sub-paragraph (1) must include –

(a) a statement that the member may select the annuity (including, where the member has an opportunity to select the provider, a statement to that effect);

(b) a statement that different annuities have different features and different rates of payment;

(c) a statement that these include, by way of example –

(i) annuities that provide payments that do not vary from year to year and annuities that provide payments that increase from year to year;

(ii) annuities that cover a single life and annuities that make provision for a spouse or partner;

(iii) annuities that may be with or without guarantee on the early death of the member;

(d) general information explaining characteristic features of the types of annuities outlined in the examples in head (c);

(e) a statement that the member should consider taking advice as to which annuity is most suitable for him.

(4) The provision of approved information shall be taken to satisfy the requirements of sub-paragraph (3)(d).

(5) “Approved information” means information contained in guidance material published for the purposes of sub-paragraph (3)(d) which –

(a) is prepared, and from time to time revised, by the Regulatory Authority, and

(b) is for the time being approved by the Department.”.

Choice of annuities: benefit payable on death of member or beneficiary

19.  For paragraph 11 of Schedule 2 to the Disclosure of Information Regulations (information as to rights, options and procedures on death of member or beneficiary) there shall be substituted the following paragraph –

“11.— (1) The rights and options (if any) on the death of the member or beneficiary and the procedures for exercising them.

(2) Paragraph 7(3) to (5) also applies in relation to a person who, under an option within sub-paragraph (1), has an opportunity to select an annuity (and, for that purpose, any reference in paragraph 7(3) to ‘the member’ is to be read as a reference to the person with that opportunity).”.

Minor amendments

20.—(1) The Disclosure of Information Regulations shall be amended in accordance with paragraphs (2) and (3).

(2) In regulation 1(2), in the definition of “Regulatory Authority” for “the Occupational Pensions Regulatory Authority” there shall be substituted “the Pensions Regulator”.

(3) In Schedule 1 paragraph 24 shall be omitted.

(1)

Regulation 11 was amended by regulation 13(3) of S.R. 1999 No. 486

(2)

Information as to the matters specified in paragraph 7 of must be sent to members and pension credit members of schemes that make provision for money purchase benefits (see regulation 5(6) and (6A) of those Regulations). Regulation 5(6A) of those Regulations was inserted by regulation 5(3)(c) of S.R. 2000 No. 335